Johnson v. James

1924 OK 73, 223 P. 843, 101 Okla. 140, 1924 Okla. LEXIS 44
CourtSupreme Court of Oklahoma
DecidedJanuary 22, 1924
Docket14353
StatusPublished
Cited by3 cases

This text of 1924 OK 73 (Johnson v. James) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. James, 1924 OK 73, 223 P. 843, 101 Okla. 140, 1924 Okla. LEXIS 44 (Okla. 1924).

Opinion

NICHOLSON, J.

Mariah Johnson, a Creek freedman, brought this action against E. W. James and others to recover. the possession of certain land and to cancel a deed executed by her guardian, conveying said land to defendant E. W. James, and for rents and profits in the sum of $5,000. Prom a judgment in favor of the defendants, the plaintiff has appealed.

It appears that in June, 1912, the guardian of Mariah Johnson, a minor, in pursuance of an order of the county court of Okfuskee county, sold the land involved to the defendant E. W. James; that said sale was duly confirmed and a guardian’s deed executed and delivered to the defendant James, conveying the land to him; that he afterwards sold and conveyed the land to óne C. D. Hines; that Hines and Wifal executjedl mortgages cohering said land to different parties, and such mortgages were afterwards foreclosed and the land sold under a decree of foreclosure to the defendant Paul Murray.

The plaintiff attacked the sale by the guardian on various grounds, among which was that the sale was void, because of a conspiracy on the part of the guardian and the purchaser, whereby an agricultural lease was executed by the guardian to the purchaser just prior to the sale, whereby the premises were leased to the purchaser for a term of five years, which lease was placed of record; that such lease was executed without any consideration therefor and operated to prevent competitive bidding for the land.

The evidence shows that the land in controversy was rough, unimproved, and no part thereof was in cultivation; that, it was inclosed in a large pasture belonging to a Mr. Wilson, who refused to pay rent therefor; that in an attempt to compel Wilson to pay for the use of the land, the guardian executed to James a lease for a term of five years, and presented the same to the county court for approval. The purpose of the lease was fully explained to ‘ the court, and he was advised that no rental was to be paid by James, and, after being fully advised in the matter, the court approved the lease. James testified that there was no understanding between him and the guardian that be would bid on the land: that it was the understanding that the lease should not be he’d against the land and that his recollection was that he executed a release thereof. He further testified that the first information he received as to the sale of the land was when he saw the notice of sale. He also testified that his wife and the wife of the guardian were cousins; that he and the guardian had been thrown together socially and have, since this transaction, been associated in business deals.

W. R. Blake, the guardian, testified in regard to the execution of the lease, and the sale of the land as follows;

“The facts in regard to that was about this: I had been trying some time to get rental from the people who were pasturing this land. The mother of these people was poor and was after me for funds from the land and I hit on the idea that may be I could execute a lease on the land and force the people that were pasturing it to pay the rentals and it was iny request that the lease was executed to Mr. .Tames. I just simply asked him that that be done that way. and after the lease was executed and approved by the county court still we could get nothing out of Mr. Wilson, who was grazing the land. He said, ‘Fence it up if you don’t want *142 me to graze it’: and we couldn’t afford to fence it. When we fell down on that we started the proceedings to sell the land. The taxes was growing on it and the mother of the children had to have money and the land was put up and sold at their request: the mother of the children . and her brother, old Diet Barnett, came to see me and insisted that it be sold.”

It is insisted that this evidence, coupled with the circumstances surrounding the transaction, shows that the guardian and the purchaser entered into a collusive agreement and in carrying out that agreement had the lease executed and recorded for the purpose of lessening the value of the land to a prospective purchaser: that the effect of this action was to chill the sale and stifle competition, and that this was done with a premeditated design on their part to transfer the title to the land to James.

The trial court found generally for the defendants, and this carried with it the finding that there was no fraud or collusion between the guardian and the purchaser. An examination of the record convinces us that plaintiff failed to make out a case of fraud, and that the court was justified in so holding. While the execution of the lease, and placing the same of record just prior to instituting the proceedings for the sale of the land, if unexplained, might point toward a collusive agreement between the guardian and the purchaser, yet this transaction was satisfactorily explained by both of them, and nothing was offered to refute their testimony.

It is well settled that where it is sought to vacate or set aside .a sale on the ground of fraud, the burden of proof rests upon the one alleging frauid, and (the proof thereof must be clear and convincing. 24 Cyc. 41. The plaintiff failed to sustain the burden cast upon her.

It is next urged that the evidence shows that the guardian’s sale was made at private sale, and that the premises were sold for- less than 90 per cent, of the appraised value. - *

’ The" land was appraised at $800; the bid submitted was in the following words:

“I further offer the sum of $720 for title to' S. W. quarter of sec. 29, Twp. 12 N., R. 11 E., belonging to Mariak Johnson, minor, taxes to be paid by guardian.”

The guardian’s return of sale shows that the land sold for $720, cash in hand, subject to approval by the court. Notice of the hearing of the return of sale shows and the decree of confirmation finds that the land sold for $720, and the guardian’s deed recites a consideration of that amount paid. This sum was exactly 90 per cent, of the appraised value.

In the guardian’s annual report filed on the 21st day of September. 1912, ,he charged himself with $720, as the proceeds of the.sale of the land. So far as the record discloses, there were no restrictions upon this fund avid no requirement that such fund or any part thereof should be used in liquidation of any debt, claim or charge against the estate of the ward. This annual report also shows that the guardian paid taxes for 1910 and 1911,- amounting to $78.70, and the fact that the guardian paid said sum as taxes upon the land is not disputed.

The plaintiff argues that the rule of caveat emptor applies to a guardian’s sale, and that the purchaser at such sale acquired only such interest as the ward might have in the property sold. This position is correct. In re Standwaitie’s Estate, 73 Oklahoma, 175 Pac. 542; Brown v. Thompson, 73 Oklahoma, 175 Pac. 931. But because this rule is applicable, it does not necessarily follow that because the guardian paid taxes due upon the land the sale was for less than 90 per cent, of the appraised value.

In David Adler, etc., Clothing Company v. Hellman et al. (Neb.) 95 N. W. 467, cited and relied upon by (he plaintiff, it was held that where the plaintiff bid in the property involved in a suit at two-thirds of its appraised value, and at a price sufficient to pay the decree, it had no right, after confirmation, to have money in the hands of the receiver applied in payment of taxes on the property.

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Bluebook (online)
1924 OK 73, 223 P. 843, 101 Okla. 140, 1924 Okla. LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-james-okla-1924.